Industry News

In March, we hosted two Prompt Payment Legislation Info and Inquiry Sessions with presenter Dana M. Taylor, Executive VP and CEO of the Mechanical Contractors Association of BC and acting chairman of Prompt Payment BC. Dana offered a background and overview of industry requests, provided an update on the progress being made with the provincial government, and discussed next steps, such as tools available and how, as industry stakeholders, we can become more involved. He recently released an opinion piece that was published in the Province; that piece is shown below.

When was the last time you bought groceries and told Save-On Foods that they would have to wait a couple of months before you would pay them? It would never fly. Trade contractors in British Columbia — those who build the structures in which you live, work, play and study — must also pay their expenses on time. But to get paid for their completed work, they must routinely wait and wait and wait.

Waiting long periods to be paid leads to cash-flow problems for companies that are mostly small- to medium-sized enterprises and are often family-run. Squeezed cash flow discourages hiring, training and investments in productivity improvements such as technologies. Badly needed apprentices are not taken on and business that could grow, don’t.

Because the practice of delaying payment has been going on so long, it has become standard in the construction industry. “Pay-when-paid” contract clauses are now considered normal. The trades are often forced to accept these terms or lose the job.

Construction is a high-risk business and payment delays have the effect of shifting the risk down the chain of payment. Trades end up bearing the burden of financing construction projects. They must build this risk into their bids which drives up the cost of construction. Nationally, as much as $46 billion, at current volumes, remains unpaid past a 30-day period, keeping that money out of economic circulation.

We know general contractors are often waiting to be paid themselves, but shifting payment delays onto the trades means more risk is being taken by the little guys, those likely least able afford to it. All too often, this cash-flow crunch leads to personal hardship, including bankruptcies. If you are a tradesperson, this translates into bounced paycheques and/or absence of benefits like health insurance and pensions.

B.C. needs prompt-payment legislation to ensure contractors and subcontractors are paid in a timely way, within 30 days. It’s only fair. While payment delays are not unique to construction, the impact is significant. Construction represents 8.6 per cent of GPP and nine per cent of the provincial workforce so when construction contractors are not paid, the economy suffers. The issue is, or ought to be, politically neutral because if implemented, everybody wins, including the B.C. economy.

Prompt-payment legislation was adopted provincially in Ontario in December 2017 and is in the process of becoming law in Manitoba. The federal government has announced its intention to introduce legislation related to public projects soon. In other jurisdictions around the world, prompt-payment legislation is well established.

In B.C., the Council of Construction Trades Associations, a coalition of 11 trade associations, has launched Prompt Payment B.C., attracting construction and professional associations and labour together to lobby the provincial government for prompt-payment legislation. There is widespread support on this issue that impacts more than 16,000 trade contractors provincewide.

While the case in support of legislation is clear, a survey is being conducted to collect data in addition to a letter-writing campaign to MLAs. Our position strengthens with more industry participation. If this issue touches you in any way, please go to www.PromptPaymentBC.ca to complete the survey and send off your letter. Even those not in the industry can send a letter. Both actions are quick and easy and will help alert government to the scope of the problem.

A complete, comprehensive and co-ordinated look into improving traffic flow on southern Vancouver Island is the focus of a new transportation strategy being launched by the Ministry of Transportation and Infrastructure.

The end of the year is a joyous time, but for some people it can be difficult. This year, instead of worrying about finding the perfect gift, attending all the parties or pretending everything is perfect, make sure you make time to take care of yourself and put your well-being first.

On the heels of a $62 million federal and provincial grant announcement, the Comox Valley Regional District has issued a Request for Proposals for a design-build contractor to deliver a new water system for Comox Valley residents.

The Canadian Construction Association and 100 of its members are gathering on Parliament Hill today to meet with federal decision makers about the essential role the industry plays in the lives of Canadians.

“CCA has been advocating for prompt payment, accelerated depreciation, support for attracting under-represented segments into construction as well as for increased funding for innovation and infrastructure, ” said Mary Van Buren, CCA president.

Construction activity on Vancouver Island remained active during the July to September 2018 period with the total dollar value of building permits issued reaching $572.8 million — a decrease of 30 per cent over the second quarter of 2018.

The City of Victoria, on behalf of the Coastal Communities Social Procurement Initiative Steering Committee, is pleased to announce it has awarded a two-year contract to Scale Collaborative, Vancouver Island Construction Association, Buy Social Canada, and Presentations Plus to incubate a two-year Social Procurement Hub for the Coastal Communities Social Procurement Initiative (CCSPI).

North Island College plumbing apprentice Cassandra Kuryliak is encouraging more women to take up the plumbing trade, just in time for Apprenticeship Recognition Week, November 4 to 10 in British Columbia.

Over here at the Construction Association, we take full advantage of every opportunity to play dress up and act out of character, while still getting our jobs done. Some of us are super...and some of us are super twisted. We love seeing our members showing their spirited side as well!

It's a hidden problem with deadly consequences. Suicide is the second leading cause of death in the construction industry in men aged 25 to 59, and the highest rates are men from 40 to 59, according to a presentation at BCCSA's Bridging the Gap Safety Conference.

The legislation is intended to recognize the important role foreign workers have in B.C.’s growing economy. While most employers and recruiters are committed to treating foreign nationals fairly, there are some who require closer scrutiny and enforcement action. In 2017, there were 47,620 work permits issued for foreign workers destined for B.C. The third largest sector is accommodation and food services (8%), followed by construction (6%) and manufacturing (5%).

We're super proud of the work that Paul Latour and his team at HeroWork, our neighbours downstairs, do out in the community and are thrilled to see involvement from our members in their many projects. Shout-out to those who helped out in their latest radical renovation for The Mustard Seed Street Church.

Kwispaa LNG has entered the next phase of project development with the submission of the Project Description to the British Columbia Environmental Assessment Office and Canadian Environmental Assessment Agency.

IBM’s Watson supercomputer has beat Jeopardy champions, reconstituted recipes, and even helped create highlight reels for the World Cup. Now it’s taking on a new tech challenge; changing how the construction industry operates.

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